You are considering the following portfolio:

Stock	Weight	Return	Standard Deviation	Beta
Shark Inc.	80%	6%	18%	.70
Village Corp.	20%	15%	27%	1.2

The covariance between the two stocks is -.04. Weight is the amount invested in each security.

a. Calculate the return, standard deviation and beta of your original portfolio.

b. You decide to graph the efficient frontier for these two stocks. You will need to calculate the return and standard deviation for these two stocks. The weights should start at 100% Shark and 0% Village, decreasing by 10% for Shark and increasing by 10% for Village until you reach 0% in Shark and 100% in Village.

c. Suppose you add a risk-free asset to your choices. Describe how this changes your choices and the impact on your original efficient frontier.